Just one month after FIFA implanted its new transfer clearing house, leading clubs have been clawing back “missing transfer millions” writes Senior Correspondent, James Corbett, with 34 clubs from countries including Argentina, Brazil, Chile and Portugal making claims totally €117 million.

In November FIFA Clearing House Regulations came into force, which the world governing body said is a major step in safeguarding transparency and accountability in the global transfer system. The regulations are a set of norms under which the Paris-based FIFA Clearing House will centralise, process and automate payments between clubs.

A key part of this are training rewards, which can amount to up to 5 per cent of a transfer fee. FIFA say that as much as $400 million each year goes unclaimed due to bad data and inaccurate record keeping, which the Clearing House aims to rectify.

“[Clubs] may not know that they can claim it in front of FIFA, or they may not have the expertise or the resources to hire a lawyer to claim their training rewards,” Emilio Garcia, FIFA’s chief legal and compliance officer told us last month. “That is the main reason why we are moving to a system of automatic calculation and entitlement.”

José María Cruz, Sevilla’s managing director, says that it is a “silent drama” facing clubs that they have missed income “that rewards its knowledge and coaching methodologies.” Cruz believes that it “disproportionately affects clubs with fewer resources.” Sevilla have claimed back €1 million themselves.

Transfer Tracker launched

Sevilla, in conjunction with LaLiga Tech, have now rolled out a technology and legal consulting service, called Transfer Tracker, which they say “will return millions in unpaid compensation payments to clubs around the world.” The service launches today (12 December).

The system was initially developed and has been operated for the last two years by the data and legal department of Sevilla, where it forms part of its strategic innovation policy.

“There are world-class academies that are producing and exporting incredible football talent but are not receiving the compensation that they deserve,” added Marcos Gonzalez, value proposition manager at LaLiga Tech. “We created Transfer Tracker to help clubs of all sizes to discover and receive this additional income, without the need to invest their own time and resources.”

 

No Manchester United dividend for Glazers after £26.5 million loss

Manchester United owners the Glazer family have not taken a dividend from the club for the first time since 2016, United’s Q1 2022/23 financial results show.

The Old Trafford club suffered a £26.5 million loss for the period, higher than the £15.5 million deficit suffered in the same period last year.

In the accounts the club states: “The Board of Directors did not approve the payment of the semi-annual dividend for fiscal 2023.”

The Glazers, who have owned United since 2005, announced last month that they are exploring all options including a possible sale of the club. The American owners were paid dividends even amid the heavy losses of the Covid-19 pandemic.

The latest deficit came despite total revenues for the period rising to £143.7 million, compared with £126.5 million in Q1 2021/22.

Commercial income was £87.4 million, up from £64.4 million in the same period last year, driven largely by the men’s first team pre-season tour in July. Covid travel restrictions had prevented a similar tour taking place in 2021. Matchday income also increased, rising to £21.3 million, up from £18.8 million.

Europa League

However, broadcast income declined to £35 million, down from £43.3 million, due to the club playing in the Europa League this season, after competing in the Champions League during the last campaign.

This also had an impact on United’s wage bill, which dropped to £82.3 million, compared with £88.5 million in Q1 2021/22.

The club forecast that its financial picture would improve over the rest of 2022/23 partly due to “reduced player wage costs” – understood to relate to the departure of Cristiano Ronaldo.

 

Infantino no show as clock ticks down FIFA/ECA agreement

FIFA president, Gianni Infantino, was a surprise no show at Friday’s European Club Association board meeting in Doha, reports Senior Correspondent, James Corbett.

The event was attended by heads of the Asian, South American, and North American football confederations as well as the UEFA general secretary.

The FIFA president’s non-attendance raised eyebrows because a memorandum of understanding between the world governing body and the ECA expires at the end of this month.

The MOU governs issues like the international calendar, player release and payments to clubs for national team appearances.

Although ECA sources say they are relaxed about the MOU and believe it will be signed before 31 December, if it is not it could lead to clubs withholding players during the next international window.

The plan was to sign at the World Cup

One attendee at the meeting described it as “a simmering issue” between the clubs and FIFA. The ECA had come to Doha at FIFA’s invitation and the meeting was held at the world governing body’s own hotel.

“The plan was to sign the MOU at the World Cup. It will still get done I’m sure, but it wasn’t done today,” said the source.

“Clubs could technically say in the next international calendar: we’re not releasing our players. It won’t come to that, but it’s definitely an issue that’s simmering.”

 

Chelsea’s £20 million sponsorship deal with crypto firm Amber set to end

Singapore-based crypto firm the Amber Group is to end its sleeve sponsorship deal with Chelsea, according to a report from Bloomberg.

The company, one of Asia’s leading crypto-trading and lending platforms, is said to be undergoing a major cost-cutting strategy amid the deteriorating outlook for virtual assets.

Amber and Chelsea announced the partnership in May, which included the display of Amber’s WhaleFin trading platform logo on the team’s shirt sleeves for the duration of the current 2022/23 season.

A source told Bloomberg that Amber is now going through legal proceedings to void the agreement, which is reportedly worth £20 million a year.

The Amber Group, which includes Temasek Holdings Pte and Sequoia China, is understood to be closing its retail operations and plans to cut its workforce to less than 400 from around 700 currently. The headcount had previously peaked at around 1,100.

Large institutions

The source said that Amber will now focus on large institutions, family offices and wealthy individuals, with the number of customers down to about 100 from hundreds of thousands due to the exit from the retail sector.

In recent days, the company has denied online speculation that it could be the next domino to fall after a series of explosions in the crypto sector, which is suffering from a $2 trillion slump. A senior executive tweeted last Wednesday that the firm was conducting “business as usual”.

 

Lyon confirm completion of final step for John Textor takeover to go ahead

Olympique Lyon have announced that the takeover of the club by American businessman John Textor has cleared its final hurdle, with the buyout now due to be closed on 19th December.

Completion of the deal has been hit by a series of delays, with the takeover on hold since 17th November pending approval from the English Premier League and Crystal Palace, in which Textor is the single largest shareholder.

However, in its latest statement updating the progress of the takeover, released on Saturday, Lyon said: “Eagle has now confirmed that all consents that were necessary have been obtained, and related agreements signed, so that all conditions have been satisfied to complete the Transaction.”

Closing process

The statement added: “Eagle and its financing sources, as well as the Sellers and OL Groupe, are now ready to launch the closing process.

“Taking into account mechanical delays inherent to this type of process, such closing should take place on December 19, 2022.

“The Company will publish a press release as soon as the closing shall have taken place.”

Wolverhampton Wanderers owner Fosun International is seeking new investment in the club but has said it will not entertain any takeover offers, The Times reports.

The development comes amid financial pressures on Fosun’s main business. The China-based multinational conglomerate has been reported as selling off assets worth more than £2 billion to tackle its growing debts.

Sources in the US investment market told The Times that Wolves have been looking for a new investor and while that has now been confirmed the club insisted that Fosun has no intention of selling up.

A Wolves spokesman said: “The football club is not for sale, and the ownership is not open to offers for its sale.”

Minority shareholding

In October 2021 the US finance and technology firm PEAK6 bought a minority shareholding in Fosun Sports, the holding entity that covers Wolves, and it is understood Fosun is looking for a similar deal.

A report on Nikkei Asia said Fosun was streamlining its assets and selling some of the companies it owns. Fosun’s chairman Guo Guangchang is also the “person with significant control” of Wolves.
 

Lyon give John Textor more time to complete takeover after receiving assurances

Olympique Lyon have agreed to grant John Textor additional time to complete his takeover of the club despite missing the latest deadline to finalise the deal.

The Ligue 1 club had given the American businessman a final deadline of Wednesday this week and said they would abandon the sale if there were any further delays.

However, in a statement released on Thursday, Lyon said they had received assurances from Eagle Football's majority shareholder that the buyout of the club would eventually take place.

Completion of the deal has been held up since 17th November, when the takeover was due to be finalised following two previous postponements on 30th September and 21st October.

Approval was still being sought from the English Premier League and Crystal Palace, in which Textor is the single largest shareholder.

In a letter to Lyon and its shareholders quoted in the club's statement, Textor said: “We now feel confident that we have secured the approval in principle from all parties for the contribution to Eagle Football of my various football interests across the United Kingdom, Brazil and Belgium.

“We therefore feel confident that the remaining consents should be obtained and the agreements signed shortly so that all conditions shall be satisfied to complete the transaction.”

“Sufficient likeliness”

The statement from Lyon added: “In light of the above, and on the basis of the statement and strong assurances of Eagle Football and Mr. John Textor, the Sellers and the Company have considered that, in view of the progress, there was sufficient likeliness that a closing of the transactions would take place shortly.

“The Company and its board of directors will monitor in real time the completion of the last remaining steps.”

DFL appoint joint managing directors to take over from outgoing CEO Donata Hopfen

Germany's football governing body the Deutsche Fussball Liga (DFL) has announced the appointment of two interim managing directors following the resignation of CEO Donata Hopfen on Wednesday evening.

In a statement, the DFL confirmed that the Eintracht Frankfurt vice-chairman Axel Hellmann, and the SC Freiburg chief financial, operations and marketing officer Oliver Leki will operate as “equal managing directors of DFL”.

Hellmann is also a member of the DFL executive committee, while Leki is 2nd deputy spokesman of the DFL executive committee and deputy chairman of the body’s supervisory board.

The duo will take over the outgoing CEO’s duties with immediate effect. The DFL said Hopfen will leave her post at the end of the year, and that Hellmann and Leki will act as “equal managing directors” for a limited period up to 30th June 2023.

The DFL also confirmed that both of the new managing directors will continue to carry out their roles at their respective clubs.

“The Supervisory Board of DFL GmbH will deal with the appointment of the DFL Management Board from next summer in a structured process over the coming months,” the body added.

“Different ideas”

The DFL announced on Wednesday that its supervisory board had decided that Hopfen, who replaced Christian Seifert as CEO on 1st January, 2022, "had different ideas about the future strategic direction of the company."

Hopfen's resignation came amid delays to the sale of a $3.6 billion stake in the Bundesliga's media rights business.

Chelsea owner Todd Boehly commits to Stamford Bridge redevelopment

Chelsea’s American owner Todd Boehly has confirmed his commitment to a massive redevelopment of Stamford Bridge, The Daily Mail reports.

The promise has come following speculation that the club may move elsewhere, with discussions about new locations being considered, including a new 60,000 seater stadium in nearby Earl's Court.

With a capacity of 42,000, Stamford Bridge is significantly smaller than the rest of the 'Big Six' in the Premier League and previous owner Roman Abramovich had considered a new ground to bring Chelsea up to the same level as their main rivals.

Discussed again

The Daily Mail had reported last month that the Earl’s Court site was being discussed again, having first been brought up under the Abramovich regime back in 2013.

However, Boehly, who took over Chelsea in May, has now promised the stadium freeholder that he will be expanding Stamford Bridge as opposed to leaving.

Donata Hopfen, CEO of Germany's football governing body Deutsche Fussball Liga (DFL) will resign from her post at the end of the year, DFL said in a statement Wednesday evening.

DFL said its supervisory board had held a meeting earlier and decided Hopfen, who replaced Christian Seifert as CEO on January 1, 2022, "had different ideas about the future strategic direction of the company."

Hopfen's resignation comes amid delays to the sale of a $3.6 billion stake in the Bundesliga's media rights business.

"We have achieved a lot and initiated a lot in the last few months. We have developed a viable future strategy for German professional football," Hopfen said.

Important impetus

Chairman of DFL's supervisory board and Borussia Dortmund managing director Hans-Joachim Watzke said:

"I would like to thank Donata Hopfen for her great commitment and the intensive months in which we worked together. With her perspective, coming from the outside, she provided important impetus for the Bundesliga."

DFL are looking into a busy period recruiting a new leadership.

Less than two months ago Robert Klein, CEO of the leagues international rights sales arm Bundesliga International, announced that he would be leaving the organisation by the end of the year.

 

Sampdoria takeover bid made by Lille owner

The Luxembourg-based investment fund Merlyn Partners, which owns Ligue 1 club Lille, has presented an expression of interest in buying Sampdoria, La Repubblica reports.

The latest development in the long-running search to find new owners for the Serie A club was confirmed by Gianluca Vidal of the Rosan Trust.

The trust has held legal ownership of the club since Massimo Ferrero resigned as president last December following his arrest by the Italian law enforcement agency Guardia di Finanza as part of an investigation into corporate crimes and bankruptcy. Ferrero had owned Sampdoria since 2014.

While the amount offered to take over the club made by Merlyn Partners, which is represented by former J.P. Morgan executive Alessandro Barnaba, is not yet known, speculation has suggested it is significantly lower than the €33 million provided by the trust.

It is understood this is because Sampdoria require an urgent €40 million recapitalisation, of which €31 million is to be paid to the tax authorities, as well as resources to ensure the club can continue to operate until the end of the season.

Fresh injections of cash

A new owner would also need to tackle debts of €100-150 million and would be expected to provide fresh injections of cash to be spent in the transfer market to help Sampdoria move away from the Serie A relegation zone.

Negotiations with Merlyn Partners are now set to take place ahead of the club’s shareholders' meeting on 14th December to discuss the possible capital increase.

 

FIFA vice president: Qatar 2022 could be last World Cup hosted by single country

FIFA vice president Victor Montagliani has claimed that the 2022 World Cup in Qatar could be the last staged in a single country.
The 2026 World Cup will be jointly hosted by the US, Mexico and Montagliani’s native Canada.

Speaking to Fox Sports, Montagliani, who is also the president of CONCACAF, said: “I don't think you'll see another World Cup held in one country again.”

He added: "This is just me guessing, but I don't. Not because one country can't host it. The US easily could. But the reality is that collaboration is always better.

“It cements ties with your neighbours politically and economically, and it's easier to go to a government when they're not carrying the whole load. It works on so many levels."

Joint bids for 2030 World Cup

Ukraine joined the existing Portugal-Spain bid for 2030 in October, and Argentina, Chile, Paraguay and Uruguay announced a joint bid for the tournament last month. Egypt, Greece and Saudi Arabia are reportedly considering one, too.

 

Nasser Al-Khelaifi: Fans and clubs will “never let European Super League happen”

Paris Saint-Germain president Nasser Al-Khelaifi has launched a renewed attack on the latest attempts to establish a European Super League.

A22, the company behind the project, presented a new concept in October apparently without guaranteed places for elite teams but the plans have been met with fierce opposition from UEFA and other stakeholders across the European game.

In an interview with Sky News in his native Qatar, the European Club Association (ECA) chairman said: "The fans will never let it happen. Clubs will never let that happen.”

Al-Khelaifi – who also holds a place on the UEFA Executive Committee and is chairman of beIN Media Group, one of UEFA’s biggest broadcast partners – was dismissive as well about the possible outcome of the European Court of Justice (ECJ) ruling over whether UEFA has an unfair monopoly on the running of club competitions.

“I'm not really worried about the [court] decision,” he said. “Even I think they will vote in our favour against it. But if not, it will not change anything."

“Nobody will join them”

Asked what he expected would happen if the ECJ did rule in favour of the Super League, he insisted: "Nobody will join them. Nobody will go to the stadium, fans. Nobody will organise anything. Who is going to play –three of them? Fantastic. Fantastic Super League."

The DFL CEO Donata Hopfen is reported to be close to losing her job following a delay to the sale of a $3.6 billion stake in the Bundesliga's media rights business to next year.

According to Kicker, Hopfen, who took up her role at the start of this year, is to be dismissed this week.

Reuters has reported that the sale of the stake in the Bundesliga's media rights business was moved amid a lack of consensus among the 36 clubs in Germany’s top two tiers.

The DFL was initially expected to get the ball rolling on the sale of a 20 per cent stake in a newly-created company handling the Bundesliga's media rights in October.

However, a source told Reuters that the deadline for indicative offers has been delayed to the first quarter of next year, with original plans to complete the process in March now in doubt.

Hopfen, whose contract as the DFL CEO was due to run until 31st December 2024, has faced growing pressure amid criticism over her handling of a number of issues, including media rights, overseas marketing, digitisation, the 50+1 rule, and the demands of the Federal Cartel Office.

Interim basis

It is understood that Eintracht Frankfurt vice-chairman Axel Hellmann and SC Freiburg chief financial, operations and marketing officer Oliver Leki will take over Hopfen's duties on an interim basis until the end of the season, before a permanent solution is found in the summer.

Hellmann sits on the DFL executive committee, and Leki is a member of the DFL's six-member supervisory board. According to Kicker, both will be released by their clubs for the rest of the season in order to be able to take over the additional tasks at the DFL.
 

Former FIFA official who criticised Qatar congratulates hosts on “wonderful World Cup”

The FIFA inspector who was one of the most high-profile critics of Qatar’s successful bid to host the tournament has praised the country’s successful hosting of the finals, reports senior correspondent James Corbett.

Former Chilean FA president Harold Mayne-Nicholls was appointed by FIFA in 2010 to lead inspections of the nine candidate countries for the 2018 and 2022 World Cups. In the intervening years his critical report was used to lambast FIFA’s decision to award the tournament to Qatar.

In it Mayne-Nicholls highlighted “potential health risks” posed by the heat, argued parts of Qatar’s proposal were “high risk” and said that the close proximity of most of the stadiums “could present an operational and logistical challenges.”

But in a video message he shared with Off The Pitch, Mayne-Nicholls congratulated the hosts saying that they had “organised a wonderful World Cup.”

“I have been in Qatar for two weeks. I came by myself to watch a World Cup and how it was going on and I can say that I'm really surprised they have organised a wonderful World Cup,” said Mayne-Nicholls.

“The stadium are first class, the grass is really good, the training centre - there's no complaints. The transportation and the logistics for my big surprise is working very, very well.

“So I can only congratulate the head of the Supreme Committee and the Emir who had this dream to bring the World Cup to the Arab countries.”

In his 2010 report Mayne-Nicholls had described the bid as presenting “a novel approach to event operations and legacy” and acknowledged that some thinking beyond the conventional World Cup model would be required to accept a Qatari World Cup. Qatar’s bid “implies a new operational model for all stakeholder groups” said the report, but added that this “raises certain questions, especially in terms of logistics and security.”

In 2015 Mayne-Nicholls was banned from football for seven years for asking for favours from a Qatari official, a ban that was partially appealed and reduced to two years in 2017.
 

French media: CVC spent €37.5 million on creation of LFP’s new commercial subsidiary

CVC Capital Partners shelled out €37.5 million on the setting up of the LFP’s new commercial subsidiary in which it holds a 13 per cent stake, according to L'Équipe.

The private equity firm paid €1.5 billion for its share of the new company and the creation of the new business was assisted by two investment banks, Lazard and Centerview, and the law firm Darrois.

Documents seen by L'Équipe show that the two banks were each paid €12 million and the Darrois €5 million for their services.
Part of the rest (€8.5 million) was used to pay 12 LFP employees, as desired by presidents of all the French professional clubs for the work involved.

Approved by LFP board

All the payments were unanimously approved by the LFP board of directors on 30th September.

The LFP’s new commercial subsidiary will manage the LFP’s broadcast and sponsorship deals, and the business has been valued at €11.5 billion.
 

Sheffield United’s owners launch legal action over Henry Mauriss’ failed takeover bid

The owners of Sheffield United have launched a legal claim over an alleged unpaid £10 million deposit for American businessman Henry Mauriss’ failed takeover of the EFL Championship club.

According to court documents seen by Sheffield newspaper The Star, the Guernsey-registered United World Holding Ltd. (UWH) has begun a High Court action against leisure and tourism operator The Network SA over two unpaid deposit payments of £9 million and £1 million.

The development marks a fresh twist to the Mauriss takeover saga, which saw the American launch a £115 million bid to take over Sheffield United earlier this summer.

Having previously failed in a bid to buy Newcastle United from Mike Ashley, Mauriss saw his offer for the Blades accepted by owner Prince Abdullah back in March 2022.

However, Mauriss was unable to pass checks by the EFL on prospective football club owners, with the deal seemingly dead in the water.

Share purchase agreement

After being introduced to Sheffield United through intermediaries, Mauriss struck a deal to take over at Bramall Lane and, according to the claim, a share purchase agreement was signed specifying that the prospective buyer should put up an agreed £10 million deposit.

The suit claims that Mauriss or his representatives did not respond to a request from the EFL for information within an agreed timeframe, and did not pay the deposit – which UWH claim constituted a breach of their share purchase agreement.

Olympique Lyon have given American businessman John Textor a final deadline of this Wednesday, 7th December to complete his takeover of the club – and said they will abandon the sale if there are any further delays.

Completion of the deal has been held up since 17th November, when the takeover was due to be finalised following two previous postponements on 30th September and 21st October.

Approval is still being sought from the English Premier League and Crystal Palace, in which Textor is the single largest shareholder, but the expectation remains that the takeover will still go through.

In a statement released on Monday, Lyon revealed that Textor’s company Eagle Football has “informed the sellers today that progress has been made in securing the approvals of all parties, including the approval of the Premier League, to proceed with the transactions and their financing, but that additional time is required.”

The statement added: “In view of the progress made in the last 48 hours, the sellers and OL Groupe have agreed to grant Eagle a final deadline as at December 7, 2022 to reach a final, unconditional and financed agreement with all parties, on the basis of which the closing process can be initiated.”

“No other choice”

Lyon warned that “after the expiry of such deadline, the sellers and OL Groupe will have no other choice than to conclude that it has become unproductive to give Eagle Football additional time to complete the transactions that Eagle has unconditionally undertaken to complete under the terms of the agreements signed on 7 July 2022.

“OL Groupe will also consider alternative sources to strengthen its equity, to ensure that it will have solutions available rapidly in the event that the transactions with Eagle Football are not completed.”

 

City Football Group acquire Brazilian club EC Bahia

Manchester City’s parent company the City Football Group (CFG) is set to add Brazilian side EC Bahia to its global network of clubs after members of the Salvador-based team voted overwhelmingly in favour of the takeover.

In a statement, Bahia said that more than 13,000 members – a record voting turnout in the club's history – gave a sweeping approval of 98.6 per cent.

The club added that both parties will continue to work on the transaction process, through which CFG are set to acquire 90 per cent of the Bahia shareholding. According to 2Playbook, the deal is worth BRL700 million (€127.1 million).

First CFG club from Brazil

Bahia, who secured promotion to Brazil's Serie A last month, will become the 13th club to be part of the CFG and the first from Brazil. The other South American teams in the network are Montevideo City Torque of Uruguay and Bolivar, based in La Paz, Bolivia.

The CFG CEO Ferran Soriano said the takeover is expected to be completed early next year. "At the end of the process, we will implement a long-term strategy for Bahia to boost the growth of the club,” he said.

“We will prioritise strengthening the squads and the grassroots divisions to compete at a high level, engaging with fans and improving their experience, achieving a solid long-term financial sustainability.”

 

Napoli post €51.9 million loss for 2021/22

Napoli have reported a loss of €51.9 million for the 2021/22 financial year, a slight improvement on the deficit of €58.9 million suffered in 2020/21.

The result, disclosed in the minutes of Napoli’s AGM held on 26th October, which have been seen by Calcio e Finanza, is the club’s third consecutive annual loss, with a deficit of €18.9 million posted in 2019/20.

The total losses over the last three years amount to €129.8 million.Napoli earned a profit of €29.2 million in 2018/19. No other details of the 2021/22 financial performance were revealed.

Improvement expected in 2022/23

For 2022/23, Napoli are expected to post considerably improved financial results after a productive summer transfer window and qualification for the Champions League round of 16. The club played in the Europa League last season.

 

Italian minister for sport: More clubs set to face false accounting allegations

Italy’s minister for sport and youth Andrea Abodi has indicated that more clubs are likely to face false accounting allegations following the escalation of the case involving Juventus.

Last week the Juventus president Andrea Agnelli and vice-president Pavel Nedved resigned alongside the entire board of directors after a police investigation opened into allegations of false accounting and market manipulation.

Speaking at an event on Monday, Abodi said Juventus is "a club that will probably not remain the only one", and suggested that this "will allow us to clean up".

“Restore credibility”

The minister added: "We need to know soon what happened and that decisions are taken to restore credibility to the system, in the principle of fair competition. And it is evident that in recent years it has not happened.”

 

Cristiano Ronaldo demands €19.9 million payment from Juventus

Cristiano Ronaldo is demanding a payment of €19.9 million from Juventus, according to Italian media.

The amount corresponds to the wage agreement arranged between the two parties during the break in 2020 due to the Covid-19 pandemic.

The Portugal international joined Juventus back in 2018 and stayed in Turin for three years, but all European leagues were paused in 2020 following the Covid outbreak.

La Gazzetta dello Sport claims that Ronaldo has yet to receive the sum that was agreed and has already contacted a legal team in order to demand the payment.

Private arrangements

The development follows investigations into alleged false accounting by Juventus which have led to the club’s entire board resigning.

The Public Prosecutor's Office of Turin has previously accused Juventus of publicly reducing player salary payments while seemingly maintaining them in private arrangements.

It has been suggested that this allowed the players and club to avoid taxes while also falsifying the salary bill to make it appear that the club’s accounts were balanced.

It is alleged that this fictitious cut in salaries and subsequent reduction in costs was presented in the budgets of 30th June 2020 and 30th June 2021.

Arsenal have announced a loss of £45.5 million for the 2021/22 financial year, less than half the deficit of £107.3 million suffered in the previous year.

The club said it lost £85 million of revenue due to the Covid-19 pandemic in 2020/21, and pointed to the return of spectators following the easing of Covid restrictions as a key factor in the reduced deficit for 2021/22.

Matchday revenue reached £79.4 million compared to just £3.8 million in 2020/21, with total football revenue climbing to £369.1 million, up from £327.6 million.

This helped compensate for reductions in income elsewhere as Arsenal endured their first season in 25 years with no European competition. Broadcast income fell to £146 million, down from £184.4 million.

As well as the lack of UEFA broadcast revenue, this was due to the 2020/21 financial year including TV revenue for more than just a single season following the Covid delayed completion of the 2019/20 campaign.

Commercial revenues improved slightly to £141.7 million, up from £136.4 million. The total profit on player sales was £22.2 million, up from £11.8 million, while player loans amounted to £2 million, down from £3.1 million.

Wage bill reduced

Arsenal’s wage bill fell to £212.3 million, down from £244.4 million. The club said “there has been a process of restructuring the men’s first-team squad to improve the efficiency of spend; this includes changes made in earlier years but where the full benefit has only been realised in the 2021/22 figures.”

Looking ahead to next year’s results, Arsenal said: “Qualification for the UEFA Europa League for 2022/23 represents a positive first step and can be viewed alongside the start to the 2022/23 season which has so far been encouraging.”

 

777 Partners deal could give Hertha Berlin investor Lars Windhorst stake in subsidiary

Hertha Berlin investor Lars Windhorst could receive a stake in a subsidiary of the American investment firm 777 Partners in return for his majority shareholding in the Bundesliga club, according to Bloomberg.

The report comes after 777 and Windhorst’s company Tennor Holding announced last month that an agreement had been reached to acquire the shares held in Hertha by Windhorst.

The latest development would keep the German financier indirectly involved at the club. Sources told Bloomberg that the two parties are now thrashing out the details of a deal, including a fresh capital injection.

Under terms being discussed, Windhorst would take a stake in 777’s multiclub football group. The sources said that deliberations are ongoing and no final decisions have been taken.

Largest foreign investment

If successful, 777’s takeover of Hertha BSC would represent the largest foreign investment ever in a German football club.

Windhorst last month agreed to sell his 64.7 per cent holding in Hertha to 777 after a dispute between himself and the club’s president that spilled into the public.

The financier paid about €375 million for his stake in 2019. Earlier this year Windhorst faced allegations he hired an Israeli spy outfit to help oust the club’s former president.

 

Study: LaLiga would suffer 55 per cent revenue loss if Super League was launched

LaLiga has presented a study from accountancy firm KPMG outlining what it claims would be the economic damage caused by the European Super League on the Spanish league and its clubs.

The report estimates that if the Super League was established, LaLiga would experience an overall revenue loss of up to 55 per cent, while the loss for non-Super League clubs would be up to 64 per cent.

According to analysis by LaLiga, the Super League would increase revenues by €400 million for both Real Madrid and FC Barcelona, who would also maintain their commercial capacity.

LaLiga argues that the other clubs would suffer from having a less attractive domestic league and decreasing interest for Spanish fans.

Similar impact elsewhere

LaLiga added that the impact would be similar in other European leagues and noted that the 40 European professional leagues and associations generate total revenues of €25.725 billion, with €11 billion of that coming from broadcast rights.

“The domestic leagues account for more than 70% of revenues in European football and are basic components in the economic and sporting ecosystem of European football,” it said.

 

Olympique Lyon takeover delayed again as wait for Premier League approval continues

The takeover of Olympique Lyon by American businessman John Textor has suffered a further delay as approval is still being sought from the English Premier League and Crystal Palace, in which Textor is the single largest shareholder.

In a statement released on Friday, Lyon relayed an update from Textor in which he said that “the realisation of the contribution of the stake in Crystal Palace has been delayed as it is subject to the approval of the British football authorities (Premier League).”

He said that “as of today, we have not yet obtained the consent of Crystal Palace and its shareholders (other than myself), which is a pre-requisite for Premier League approval.

“We have made significant progress in recent days and believe we are on a good path to reach an agreement in the very next days.

“This will be the last condition to be satisfied, under the financing agreements between Eagle Football and its debt and equity investors, in order to proceed with the closing of the transaction with OL Groupe.”

“Additional period of time”

The statement from Lyon ending by saying that “in light of the above, the sellers and OL Groupe have agreed to give an additional period of time to Eagle Football in order to finalise these different steps.

“The sellers and OL Groupe will decide, on Sunday evening, how to proceed with the transaction in light of the progress made by then.”

The delay in Premier League approval has been holding up the sale since 17 November, when the takeover was due to be finalised following two previous postponements on 30th September and 21st October.

 

FC Barcelona partners with Legends to help boost Camp Nou revenue

FC Barcelona have announced a tie-up with the US-based premium experiences company Legends International to help boost revenues from the renovated Camp Nou.

In a statement, Barça said Legends will “promote the design and marketing of the future VIP boxes and seats” at the stadium, which forms the centre piece of the Espai Barça project to transform the club’s home ground and its immediate surroundings.

The partnership with Legends will be designed to complement the club’s work with another American company, the Innovative Partnerships Group (IPG 360). Barcelona have already started working with the international marketing firm on the search for “new partners and strategic associations” for the project.

Barcelona said they are aiming for the hospitality services and new partnership agreements to jointly contribute more than €120 million per year from the Espai Barça project and revamped Camp Nou.

Treble the number of VIP places

In their statement, Barcelona said: “The future stadium will offer a new range of 100% Barça experiences, in addition to a design that incorporates a wide variety of VIP boxes and seats of much higher quality than at present, and in line with the best European stadiums, the aim being to treble the number of places currently being offered.

The club added: “The current agreement with Spotify for the title rights of the Camp Nou was just the first of a series of additional agreements on which the club is working with leading companies in sectors such as sustainability, mobility and technology, and which should be closed in the coming months.”

UEFA’s Club Financial Control Body (CFCB) has opened an investigation into Juventus for “potential breaches of the Club Licensing and Financial Fair Play regulations” after a governance scandal that has claimed the entire board.

Club president Andrea Agnelli and vice-president Pavel Nedved resigned from the club alongside the rest of the Bianconeri’s directors on Monday night after a police investigation opened into allegations of false accounting and market manipulation.

UEFA says it will cooperate with national authorities in investigating the alleged financial violations that were recently made public.

It also pointed to a settlement agreement it reached with Juventus in August after the club failed to fulfil its break even obligations.

“In the event that, after conclusion of this investigation, the club’s financial situation was significantly different from that assessed by the CFCB First Chamber at the time the settlement agreement was concluded, or if new and substantial facts arise or become known, the CFCB First Chamber reserves the right to terminate the settlement agreement, take any legal step it may deem appropriate, and impose disciplinary measures in accordance with the applicable UEFA CFCB Procedural Rules,” UEFA said in a statement.

Crisis may pull in other clubs

Meanwhile, Corriere Della Serra reports that Turin prosecutors are evaluating whether and which documents to transmit to colleagues in other cities in a move that could draw in other clubs to the scandal. “At stake are some companies that, over the years under investigation, have done business with Juve, starting with Atalanta and Genoa,” says the report.

The paper adds that prosecutors are preparing a request for indictment of Juventus’s leading executives.
 

American suitors lined up for potential Liverpool stake

Liverpool owners Fenway Sports Group (FSG) are in discussions “with an array of suitors” interested in buying “either all or part of Liverpool Football Club”, the Boston Globe reports, citing unnamed sources.

The story assumes added significance because Fenway’s owner John Henry is also proprietor of the Globe.

FSG is open to a complete takeover but is yet to receive what is termed “a compelling offer” and is unsure if it will. A new investor or investors joining FSG in order to inject more capital for player acquisitions and capital improvements is the more likely outcome of discussions, says the report, which adds that one of the potential partners is from North America.

Last month it was revealed that FSG hired Goldman Sachs and Morgan Stanley to explore a sale of the club, which they have owned since 2010.

No urgency from FSG

At the time FSG put out a carefully worded statement saying “under the right terms and conditions we would consider new shareholders if it was in the best interests of Liverpool as a club” but added that it remained “fully committed” to the success of the club, both on and off the pitch.

FSG chairman Tom Werner said two weeks ago that it was “business as usual” adding “there’s no urgency, no time frame for us” with regards a sale.
 

LaLiga rebut Real and Barca claims over EGM

LaLiga have dismissed claims made by its two biggest clubs that an Extraordinary General Assembly planned for next Thursday in Dubai is “illegal”.

Earlier this week the two clubs said they were boycotting the EGM, questioning the merits of travelling 5000km for a league meeting and saying they had not received enough notification.

The Barcelona statement read: “The modification of statutes and general regulations of LaLiga… requires prior debate and a more extensive and participatory analysis to come to the best consensus that such a wide-ranging reform deserves.”

However LaLiga has hit back, saying that the accusations made by the two clubs are “unfounded” and that attendance in Dubai was voluntary and part of the league’s internationalisation efforts. It said that clubs had been notified about the meeting as early as 6 September and that Barcelona had confirmed the attendance of its executives in mid-October. It added that clubs were allowed to participate remotely.

Internal regulations followed in timely manner

“In no case can said call be classified as illegal since it has been duly called following the internal regulations that apply in these cases in a timely manner,” LaLiga said in a statement.

“On the other hand, neither the directly applicable positive regulations nor the internal regulations of LaLiga limit the possibility of the general assembly holding its meetings anywhere as long as this is indicated in the notice. On the other hand, it is not the first time that the Assembly is held in places other than the registered office of LaLiga.”

It added: “LaLiga does not consider this trip a waste, but rather an investment to continue the growth and international development of the clubs.”

Further details have emerged in the drama engulfing Juventus following the resignation of the club’s board on Monday night.

Club president Andrea Agnelli and vice-president Pavel Nedved resigned from the club alongside the entire board of directors after a police investigation opened into allegations of false accounting and market manipulation.

The club now faces tough sanctions, including possible relegation. La Gazzetta dello Sport has reported that requests for Agnelli, Nedved and the other board members to be indicted were due to be made shortly after their resignations were announced.

Deadline expired

The charges are now due to be laid out in the coming days. On Tuesday, the deadline for the 16 suspects –the club itselfand 15 individuals – to present defensive pleadings and to be questioned expired.

Only five have done so – all former Turin mayors and former auditors – and now the prosecutors will be required to evaluate their position.

The individuals facing a request to be indicted also include the former Juventus sporting director Fabio Paratici, who is now Tottenham Hotspur’s managing director of football.

 

FIGC to investigate private correspondence between Juventus and players

Juventus are facing a further investigation into its financial practices as the scandal surrounding the club continues to escalate.

According to the Italian media outlet ANSA, the Public Prosecutor's Office of the Italian Football Federation (FIGC) has started to examine private correspondence between Juventus and the club’s players in relation to the alleged false accounting.

The Public Prosecutor's Office of Turin has previously accused the Turin club of publicly reducing player salary payments while seemingly maintaining them in private arrangements.

It has been suggested that this allowed the players and club to avoid taxes while also falsifying the salary bill to make it appear that the club’s accounts were balanced.

It is alleged that this fictitious cut in salaries and subsequent reduction in costs was presented in the budgets of 30th June 2020 and 30th June 2021.

Gravina calls for fair hearing

Meanwhile, the FIGC president Gabriele Gravina has called for Juventus to be given a fair hearing before any punishments are handed out.

Speaking on the sidelines of a Football & Welfare event in Naples, Gravina said: "I don't like the idea of sanctioning some realities, in this case Juventus, before there is a trial.

“There are investigations, there are acquisitions of documents, our prosecutor's office is alerted, but we do not know the outcome and let the ordinary judiciary go forward".

Asked if the alleged irregularities could have also influenced Juventus's sporting successes, Gravina added: "It's vox vostra, not vox populi. If we want to go on the lynching in the square it is not a problem, but we are calm because I fear that that theme may also concern other subjects.”

Amid confusion about what he meant by “other subjects”, Gravina then clarified that he was not suggesting other Italian clubs are set to face similar crises.

“The theme that this topic may concern other clubs does not refer to the ongoing investigation on Juventus but to an exasperated reaction in Italy, in general, that makes guilty those who have not yet been convicted,” he said.

 

Inter Milan face more payment delays from shirt sponsor DigitalBits

Inter Milan are continuing to experience difficulties with missed payments from its front-of-shirt sponsor DigitalBits, the club’s latest accounts show.

The Q1 2022/23 financial statement from Inter Media and Communication, which manages and operates the club’s media, broadcast and sponsorship business, states that DigitalBits has not yet paid the first two instalments, invoiced in July and October, under the agreement for the 2022/23 season.

The two invoices are for a total of €16 million, out of €24 million due for the entire campaign.

Last year the cryptocurrency firm agreed a four-year partnership with Inter worth $85 million, and was the club’s sleeve sponsor for the 2021/22 season, before replacing Socios as the main shirt sponsor for the current 2022/23 campaign.

However, before this season got underway Inter removed the DigitalBits logo from the shirts of their women’s team, as well as from advertising boards for certain matches, the club’s training ground, and from their website, following a series of missed payments.

€1.6 million of bonuses not paid

The new Inter Media and Communication accounts state that Digitalbits has paid in full the €5 million due for the sleeve sponsor deal for 2021/22, in addition to a €100,000 bonus for reaching the knockout rounds of the Champions League.

However, subsequently €1.6 million of bonuses due for Inter Milan’s second place in Serie A and winning the Coppa Italia have not been paid.

"In addition, the partner has not yet presented the project, contractually envisaged, relating to the integration of the Group's digital ecosystem, just renewed by our company," Inter said.

The club added: "We understand that the crisis in the cryptocurrency industry, which worsened during the second quarter of the year 2022, has significantly affected the customer's ability to fulfil its obligations.”

However, it said that “we reserve all actions and remedies to protect our contractual interests and rights.”

 

Real Madrid and FC Barcelona refuse to attend LaLiga meeting in Dubai

Real Madrid and FC Barcelona have ramped up their attack on LaLiga as both clubs announced they would not be attending the league’s Extraordinary General Assembly scheduled for 7th December in Dubai.

In a statement, Real Madrid noted that clubs were only informed about the meeting on 25th November, and were told that it would be held "urgently … in order to address multiple and important changes to the statute and internal regulations of LaLiga.”

The club added: “We consider the convocation illegal, as the clubs would have to gather more than 5,000 km from the headquarters of La Liga.

“It is completely unjustifiable to face in this improvised and urgent way, without the appropriate debate and the correct analysis, significant changes to the internal regulations of LaLiga.”

In a similar vein, the Barcelona statement read: “The modification of statutes and general regulations of LaLiga … requires prior debate and a more extensive and participatory analysis to come to the best consensus that such a wide-ranging reform deserves.”

Juventus's backing

Meanwhile, The Daily Telegraph reports that both Madrid and Barcelona believe they still have Juventus's backing over the plans to revive the European Super League project despite the crisis engulfing the Italian club.

It is understood that Madrid and Barça will still press ahead with their landmark legal action against UEFA, as well as a planned event on Friday, in spite of the resignation of the entire Juventus board this week, including key Super League ally, president Andrea Agnelli.

Chaos reigns at Juventus as the club faces tough sanctions – including possible relegation – following a governance scandal that has claimed the entire board, reports Senior Correspondent James Corbett.

Club president Andrea Agnelli and vice-president Pavel Nedved resigned from the club alongside entire board of directors on Monday night after a police investigation opened into allegations of false accounting and market manipulation.

The outgoing board “considered to be in the best social interest to recommend that Juventus equip itself with a new board of directors to address these issues,” said a statement issued by the club.

At the heart of the case are player salary payments that were publicly reduced or given up during the pandemic, but which were seemingly maintained “off the books”. It would seem that this allowed the players and club to avoid taxes while also falsifying the salary bill to make it seem as if the books were balanced.

This is in breach not just of Italian league and UEFA financial control regulations, but seemingly also those of the Italian stock exchange and tax authorities.
The federal prosecutor’s office has investigation papers in hand since the weekend and is evaluating whether there are grounds for opening an investigation. Juventus have previously been investigated and cleared over allegations that it inflated transfer fees.

Significant penalties

Juventus could face significant penalties for this debacle. Relegated after the Calciopoli scandal in 2006 it could again face sanctions which, according to the FIGC code, range from the “penalisation of one or more points in the standings” to “relegation to the last place in the standings of the relevant championship and therefore the passage to the lower category”. The FIGC also has the power to drop them into the regional leagues.

Juventus were contacted for comment.

John Elkann, the CEO of Juventus’ holding company Exor, called the resignation of Juventus’ board of directors ‘an act of responsibility’.

“I want to thank my cousin Andrea for giving us extraordinary emotions, which we will never forget. In these 12 years we have won so much. The credit is mainly his, as well as the women and men who have achieved memorable goals under his leadership.

“Our history speaks of victories and gives us the strength we need precisely in these moments. With the support and affection of our fans, we have the opportunity to build an extraordinary future.”

 

No sympathy from Tebas as Spanish league weighs in on fallen Juventus boss

LaLiga president Javier Tebas has accused outgoing Juventus president Andrea Agnelli of ““manipulating” balance sheets, valuations, documents for many years to “deceive” public authorities, sports, shareholders [and] fans.”

The Spaniard issued the harshly worded tweet hours after LaLiga set out demands for “immediate sports sanctions to be applied to the club.”

Tebas added in his tweet to Agnelli: “You also wanted to DECEIVE the world of football with the kindness of the SUPERLEAGUE, your resignation is GREAT NEWS.”

In April, LaLiga laid out complaints on financial fair play breaches filed with UEFA against Juventus and also Manchester City and Paris Saint Germain.

The Spanish league alleged that Juventus accounted for transfers above fair value and under accounted for player salaries – in breach of UEFA sanctions. It claims the complaint is “part of its campaign to promote financially sustainable football in Europe.”

Although the complaint is still with UEFA, Juventus were cleared of the allegations in Italy after an investigation by the FIGC and the prosecutor closed its file. But following further revelations that led to the fall of the Bianconeri board, the federal prosecutor is reported to be reassessing the case.

LaLiga statement

“The Spanish competition itself has applied its “economic control” rules for nearly a decade, at the request of the clubs that make up the league. Financial sustainability is paramount to protecting the business of football,” the league said in a statement. “Protect our football.”
 

Al-Khelaifi: “PSG are tired of waiting for stadium deal”

Paris Saint Germain president Nasser Al-Khelaifi has spoken of his frustrations in seeking a deal to buy the club’s Parc des Princes home from Paris council and has said that he feels the club are “not welcome” at their stadium.

Last week Off The Pitch revealed that PSG are seeking to buy France’s national football stadium, Stade France, from the French government after talks had stalled on purchasing their current home. PSG are also considering two sites for a purpose built stadium.

Speaking to Marca, Al-Khelaifi said PSG’s first option remained their current home, but said that the “the City Council does not want us to stay” and were “pushing us out.”

“Every time it's false promises - today, tomorrow, this election, next election, we are tired of this,” he said of the talks to buy the stadium.

“We need a proper settlement. I absolutely love Parc des Princes, it's our history and I respect this more than anything, and staying has always been our option one. But I don't think they want us there.

€80 million invested

“Around €80 million has been invested in the stadium out of our own pocket, but it's not our stadium, who else would do this?

“We want a stadium like the other clubs - we need to increase our revenues, to have a better stadium for our fans; and more fans want to come in then we can facilitate.

“The City Council think we are joking, but we are not joking and are totally very serious about other options. We are looking at other options because I don't think we are welcome at Parc des Princes anymore. They are playing games with us. 5 years we are tired.”
 

Bayern CEO Kahn laments “extreme” politicisation of football

Bayern Munich chief executive Oliver Kahn has entered the heightened debate over football and politics in the wake of the Qatar World Cup, saying that football is becoming too political and that issues should be resolved by officials rather than players.

“The politicisation of football is becoming more and more extreme,” Kahn told Sky TV.

“You don't just overwhelm the players, you also overwhelm football, which can certainly do many things. Football can always be a piece of the puzzle, set certain signals, push certain developments.

“But what has happened in the last weeks and months goes beyond the normal level, football cannot do that.”

Kahn was referring to the human rights debate around World Cup hosts Qatar before and during the current tournament. FIFA denied Germany and several other nations the chance to wear a “One Love” pro-diversity armband.

Decision on Qatari partnership delayed

However Bayern have also come in for criticism over its deals with the Arab state, including warm weather training camps hosted there and its longstanding partnership with Qatar Airways. Last month Bayern faced a resolution at its AGM over its dealings with Qatar. The club opted to delay a decision until after the World Cup.

Kahn said that such issues should be sorted off the pitch and defended his players, who according to him were "pointing the way" on and off the pitch.

Australian tournament organisers sue Rangers

The organisers of the Sydney Cup, a competition played in Australia earlier this month, are suing Rangers over its decision to pull out.

In April Rangers withdrew from the competition, where they were meant to be facing Old Firm rivals Celtic before the World Cup, and were replaced by Everton.

The Athletic reports that court documents lodged last week in Australia show that Rangers could be liable for up to £1.6million if the case put forward by the promoters TEG and Left Field is successful.

Rangers have accused the organisers of being “unwilling to fulfil their commitments” to the club and are reported to be taking action of their own over what they allege are numerous breaches of contract. According to the report these relate “to the communications around the launch of the event, marketing and scheduled payments.”

Australian fans let down

A statement by the promoters from earlier this year read: “In changing their minds, the Rangers board has let down many, many fans in Australia and the Asian region. We will now consult with our stakeholders before determining our response.”

Everton beat Celtic on penalties earlier this month to win the Sydney Cup.

The Qatari owners of Paris Saint-Germain are targeting a valuation of more than €4 billion in talks with potential investors, according to The Financial Times.

The Ligue 1 champions have been in discussions with several investors since the summer over a stake sale of up to 15 per cent, including at least two US-based funds.

PSG president Nasser al-Khelaifi told the FT that talks were continuing based on a valuation of “over €4 billion”, although completing any deal could still “take months”.

Strategic investment

Al-Khelaifi insisted the current talks over PSG were not a sign of Qatar losing its appetite for football now that the World Cup had finally arrived, but rather the chance to bring in outside expertise to help expand the business through strategic investment.

“PSG is an investment in sport –we’re proud of the club and our fans,” he said. “We have a long-term project here.”

Al-Khelaifi added that the club was also “looking seriously at different options” for building a new stadium in Paris if it could not agree a deal to buy its current home from the government. “We need a new stadium. We need to own the stadium,” he said.

 

RFU head: Russia may consider switching from UEFA to AFC

Russian Football Union (RFU) head Alexander Dyukov has said it may consider switching its football federation membership to Asia from Europe.
The move would mean joining the Asian Football Confederation (AFC) and leaving UEFA.

“A few months ago I said that Asia was premature,” Dyukov told the Russian RIA news agency. “But now it is an opportunity that we should consider.”

Back in February, FIFA and UEFA both decided that all Russian teams, whether national or club sides, would be suspended from participation in their global and European competitions following Russia’s invasion of Ukraine.

In July, the Court of Arbitration for Sport (CAS) dismissed appeals filed by the RFU and four Russian clubs against FIFA and UEFA’s decision to ban them from all competition until further notice.

“European family”

“I have not spoken to representatives from Asia yet because there is UEFA, they consider us a member of the European family,” Dyukov said. “It would be unseemly of us to start negotiations over their heads.”

 

Real Mallorca set for €15 million capital increase to fund stadium revamp

Real Mallorca are set to receive a fresh injection of capital from their owners to help fund the renovation of their home stadium Son Moix.

The club announced on its website that it will carry out the capital increase and while it did not reveal the figure, according to Diario de Mallorca, it will be around €15 million.

The additional financing will be used alongside some of the €27 million investment the club has received from LaLiga’s project with the private equity firm CVC, which is said to be insufficient to finance the entire cost of the stadium works.

Fans closer to the pitch

The fresh injection of funds will come from Real Mallorca’s largest shareholders, Andy Kohlberg and Robert Sarver, and is due to be approved at the club’s next ordinary general meeting of shareholders on 27th December.

The additional €15 million will be allocated entirely to the stadium renovation, and it is understood the total amount required to complete the works is €20 million.

The revamping of the Son Moix is scheduled to be finished in January 2024. The first phase is already complete but there are three more phases to go. The project will allow fans to be closer to the pitch and also provide extra cover from a new roof.